Oil extends gains as OPEC+ prepares to meet

By Sheela Tobben on 12/3/2019

NEW YORK (Bloomberg) - Oil rose for a second day as investors focused on the upcoming OPEC+ meeting that could lead to deeper supply cuts by some of the world’s biggest crude producers.

Futures edged higher in New York on Tuesday to the highest settlement in almost a week. Members of the Organization of Petroleum Exporting Countries are sending conflicting signals about whether tougher supply caps are imminent as the cartel and its allies prepare for key meetings later this week.

Crude also bounced above its 50-day moving average and the U.S. greenback declined, bullish indicators for chart-watching technical traders.

 “With the OPEC meetings coming up, there are expectations that not only will there be an extension of the existing cuts but also a further production cut,” said Andy Lipow, president of Lipow Oil Associates LLC in Houston.

During preparatory discussions on Tuesday, cartel delegates said deepening or extending supply cuts hadn’t been discussed. Earlier in the day’s trading session, futures fell after U.S. President Donald Trump said he was willing to wait another year to sign a trade deal with China.

West Texas Intermediate for January delivery settled 14 cents higher to $56.10 a barrel on the New York Mercantile Exchange.

Brent for February settlement declined 10 cents to $60.82 on the London-based ICE Futures Europe Exchange. The global benchmark crude traded at a $4.79 premium to WTI for the same month.

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